What, Why, Types & Sources
use of someone else's money, borrowed now with the agreement to pay it back later
credit
complete record for your borrowing and repayment performance
credit history
credit score
previous debts erased by the court during bankruptcy proceedings
discharged debt
written statement of a consumer's credit history
credit report
type of loan for a specific amount that must be repaid in full, including all finance chargers by a specific due date
closed-end credit
consumer request that requires the credit bureaus to deny all access to a consumer's credit information or files
credit freeze
biggest cause of bankruptcy
medical expanses
legal process that relieves debtors of the responsibility of paying their debts or protects them wile they try to repay
bankruptcy
legal process that allows part of your paycheck to be withheld for payment of debt
garnishment
cost of credit expressed as a yearly percentage
APR (annual percentage rate)
making payments on or before the due date is the responsibility of the _________ to the ____________
the debtors to the creditors
payment history, amounts owed, length of credit history, types of credit, and new credit are all used to calculate what?
FICO score
points assigned to the amount of debt, late payments, amount & types of open accounts, income, etc.
point system
court sells debtor's assets & uses proceeds to pay as much of the debt as possible
liquidation
three things that need to be considered before applying for credit
income, financial position, collateral
providing information about all the rules and regulations, including minimum payment and interest rates, is the responsibility of the ________ to the __________
the creditor to the debtor
type of bankruptcy that provide immediate relief to debtors, offering them a clean slate to start over
Chapter 7 Bankruptcy
amount borrowed from the creditor
principal
least amount you may pay that month under your credit agreement
minimum payment
along with income, one must consider [this] before applying for credit
cash inflow and outflow
court order that allows creditors to collect the debts you agreed to pay
judgement
when handling the bankruptcy process, [this kind of bankruptcy] is when a debtor keeping their property but in return must adhere to a court-mandated payment plan to repay a large amount of their debt
reorganization
occurs when a debtor files a petition with a federal court asking to be declared bankrupt
voluntary bankruptcy
the principal plus interest for the time you have the loan
balance due